The Zakat, Tax and Customs Authority in Saudi Arabia announced the monitoring of a number of violations of the value-added tax due on private educational services provided to citizens in some schools.
This necessitated the authority’s confirmation that these educational services are covered by the royal decree, which stipulates that the state bears the value-added tax due on it.
She also clarified that the state bears the value-added tax due on private educational services provided to citizens, which includes the value of school expenses, including the value of textbooks sold by private and international schools that are subject to tax and approved by the Ministry of Education.
Royal Order No. (A/86)
The authority added that this comes in implementation of Royal Decree No. (A/86) dated Rabi` al-Thani 18, 1439 AH, which stipulates that the state bears the value-added tax for citizens benefiting from the private private education sector.
In addition, she confirmed that the educational services included in the scope of the application of the royal order include educational services provided by private universities (for bachelors) that fall under the supervision of the Ministry of Education, in addition to educational and training programs supervised by the General Organization for Technical and Vocational Training, which are equivalent to the corresponding and similar educational certificates included. Within the scope of the application of the royal order at the Ministry of Education, which has a duration of more than two training years.
The authority said that the mechanism for applying the state’s tax burden, agreed upon between the authorities concerned with implementing the above-mentioned royal order, stipulates that the tax on covered educational services is not collected from the citizens who benefit from it, after the taxable educational authorities verify that the beneficiary is the citizen included in the royal order, and that The citizen’s data is included in the tax invoice issued by him, including the national identity number and contact details, with the educational authority declaring the value of the supply included in the scope of the application of the royal order within the field designated for it in the tax return without paying the tax due on that supply.
It also called on the public, when detecting any violations in this regard, to report it through its website zatca.gov.sa or through the application of value-added tax, or to contact it through the unified call center number 19993, which operates 24 hours a day, seven days a week.